PKO BP negotiating purchase of AIG's Polish unit

Poland's state-controlled bank, PKO BP is in talks to buy the Polish devision of AIG, which would include AIG Bank Polska and AIG Credit, the bank announced in a statement.

Bank PKO has at the end of November submitted an offer to purchase 99.92 percent of shares in AIG Bank Polska and 100 percent shares in AIG Credit. Currently, the bank is in negotiations with both companies. The bank has also stated that it would finance the deal from its own resource, however, no time was given as to when the deal would be complete.

Treasury Minister Aleksander Grad has said last week that the state treasury has urged PKO bank to look for local and foreign takeover targets after the financial crisis has cut the price of its rivals. AIG was saved from bankruptcy by a US government bailout and the company has been looking to raise cash by shedding its assets.

Meanwhile, AIG has said on Wednesday that the bank's in talks with a number of interested parties.

Source: Reuters, PAP